GST Council should now seriously think of including petroleum products, electricity, and real estate in GST ambit. If alcoholic liquor can also be subsumed, it would be indeed a great achievement.
CBIC has recently issued a new set of FAQ’s on GST on real estate projects for which changes were made recently. Accordingly, while a home buyer can not decide upon the rate of GST to be levied to installments remaining to be paid for a under construction flat or on a new booking, it is the builder who will have to opt for the GST rate, i.e., new or old @ 12%. As a result, there could be situations that for a similar flats, different buyers may have to shell out different amounts based on options chosen by the builders.
Alco beverages sector is highly regulated in India from all angles be- it regulation of industry itself in terms of capacity, products, marketing and distribution or taxation. Indirect taxation has been a concern for alco-beverages, both in pre-GST regime prior to July 1, 2017 and even today. While it suffered heavy and multiple taxation in pre-GST era, presently it is not only crippled with GST and non-GST taxes but also the adverse cascading impact due to not being covered under Goods and Services Tax (GST).
CBIC has issued two more Circulars, viz, Circular No. 100 dated 30.4.2019 on applicability of GST on seed certification tags and Circular No. 101 dated 30.4.2019 on GST exemption on upfront amount payable in installments for long term lease of plots. Earlier 3 Notifications, 2 Circulars and one Order were issued on 23.04.2019. Circular No. 98 dated 23.04.2019 was on manner of utilization of input tax credit as per new rule 88A. Circular No. 99 provides clarification on revocation of cancellation of registration under GST.
The Government has issue a clarification on manner of utilizing input tax credit w.e.f. 29.03.2019 [As clarified by CBIC Circular No. 98/17/2019-GST dated 23.04.2019] because GSTN does not have updation for the new manner of taking credit.
During the year 2018, the NAA has passed 28 orders against the complaints referred to it. Following is the gist of NAA Orders issued in 2018. It may be noted that out of 28 Orders, Anti-profiteering could not be established in 18 cases.
Section 49 of the CGST Act, 2017 contains provisions in relation to payment of tax, interest, penalty and other amounts. Section 49 (5) of CGST Act, 2017 provides manner of utilizing Input Tax Credit (ITC) for payment of GST output tax liability, e.g IGST can be set off against IGST and then CGST and SGST, CGST can be set off against CGST and then against IGST, and SGST can be set off against SGST and then against IGST.
GST Council met for the 34th time since its constitution yesterday (19th March, 2019) for taking crucial decisions on real estate sector. Taking forward the discussions and decisions of 33rd GST Council meeting dated 24.02.2019 GSTC has now taken important decisions in relation to levy of GST on real estate sector including manner of transition to new lower tax regime w.e.f. April 1, 2019.
The 33rd meeting of GST Council was held on 20.02.2019 which was later adjourned to 24.02.2019. In a major move, GST Council recommended a much needed breather to real estate sector so much so that it would be beneficial to both – builders-developers as well as buyers and this sector, already reeling under slow down / recession will be able to see demand picking up due to lower GST.
The Government has amended CGST Act, 2017 vide CGST Amendment Act, 2018 with various changes w.e.f 01.02.2019 and one of the important amendment was made in Section 49 of CGST Act by introducing new section 49A to the CGST Act, 2017.
